VAT REGISTRATION DATE DIFFERENT 2ND TIME ROUND?

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Hi lovely members!

I've recently been helping with a new client who should have been VAT registered in 2017 and then dropped below the de-registration limit in April 2018. He then went over the VAT registration limit again in November 2018 and initally HMRC stated that the new registration date was 1 January 2019 ie 30 days notice given and then beginning of next month. However, they have now said that they have made a mistake and the registration date is 1 November 2018 as because the sub period is only a 7 month gap between the first period then this second period does not receive the same 2 month VAT rule for registration. 

I have searched all over trying to find some information regarding this rule and cannot find anything. Have any of you ever come across this and if so can you possible point me in the right direction.

Thanks as ever

Lugalugs

Replies (4)

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RLI
By lionofludesch
14th Jun 2024 15:32

I would have said the EDR was 2017. He might have been able to apply for deregistration in April 2018 but, presumably, he didn't as he wasn't registered.

I take it HMRC are fully aware of the earlier breach?

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Replying to lionofludesch:
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By Lugalugs
14th Jun 2024 16:12

Yes HMRC are looking at it now. It's just they are saying that he should have registered again as soon as he hit the limit rather than waiting 30 days and then re-register the start of the next month.

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Replying to Lugalugs:
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By FactChecker
14th Jun 2024 18:53

And it's taken them 5 1/2 years to notice/say anything?
Even by HMRC standards that's tardy ... so is there something else going on?

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Replying to FactChecker:
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By Lugalugs
18th Jun 2024 11:55

Not that I'm aware of. Just can't understand the rule and can't find anywhere it says it's correct.

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